So you have found a place you want to put an offer on. What now...? Your realtor will get together with you and provide comparable sales to the subject property. A proper CMA will be put together based on past sales and current market conditions. Based on this, along with the value the property may personally have on you, a price can then be determined. Your realtor will then draft up an offer to purchase.
Components of an Offer Include:
Depending on the value that the property holds on you, market conditions, and knowledge from your realtor, the price will be what the buyer is willing to pay for the property. This price may differ from the seller's asking price
The deposit is token of good faith that shows the buyers intention to purchase the property. It is applied against the purchase price of the home when the sale closes. Your realtor can assist you with an appropriate amount, but typically speaking, it is 5% of the purchase price.
An offer includes "terms" which specify's the total price offered and how the financing will be arranged. Either by way of your own financing through a bank or mortgage broker, or assuming the seller's mortgage (assumability). Assumability is a good option if the seller's mortgage has an attractive interest rate.
Within the offer there are specifications which outline what will be included and excluded in the sale. Some inclusions typically are appliances, fixtures, decorative items, etc.
These are included in a contract to protect a party's interest and must occur and or be removed in order for the sale to close.
The completion date is typically 1-2 days prior to the possession date. This allows time for the transfer of funds and title prior to the keys being handed over to the new buyers.